The upward trend in life expectancy has been evident for many years and yet still millions of Americans do little to plan for the large chunk of their lives that will live in retirement.
A survey from Western & Southern Financial Group is the latest to highlight a lack of professional planning – and therefore confidence – in retirement plans with inflation having added a new layer of concern.
For pre-retirees, their greatest fears are running out of money (70%), health care costs (57%), inflation (54%) and Social Security cuts (49%) while those already retired rank Social Security cuts as the largest concern (61%), followed by inflation (60%), running out of money (54%), and healthcare costs (46%).
Six in ten across all age groups do not have a financial professional, although a third are looking for one.
This should perhaps be higher on the agenda given that almost half of poll participants are only slightly or not at all confident in being able to manage their own investments throughout retirement. Women and those with low incomes are less confident in this regard.
"Sustaining one's desired retirement lifestyle requires a balancing act," said Jill McGruder, senior vice president and chief marketing officer at Western & Southern. "On one hand, it calls for producing ongoing income for ongoing expenses, both expected as well as unplanned. On the other hand, it demands protecting asset values from risks such as inflation, market volatility, increased health care spending and extended lifespan.”
The report reveals that more than 50% of those with a formal, written retirement plan are very or extremely confident in having enough retirement income.
However, just 41% of pre-retirees say they are knowledgeable about what retirement planning entails compared to 47% of retirees, although they are twice as concerned about it (26% of pre-retirees vs. 13% of retirees).
High-net-worth individuals are more than twice as knowledgeable of retirement income planning as their low net worth counterparts (57% vs. 24%).
The study found that the role that annuities play in retirement planning is one area that it not well understood:
"While fully eight in 10 of those surveyed believe income planning is necessary for retirement, only two-thirds agree that annuities can provide a protected lifetime income,” McGruder added. “Our role is to build greater understanding of an annuity's guaranteed benefits."
The leadership changes coming in June, which also include wealth management and digital unit heads, come as the firm pushes to offer more comprehensive services.
Strategist sees relatively little risk of the university losing its tax-exempt status, which could pose opportunity for investors with a "longer time horizon."
As the next generation of investors take their turn, advisors have to strike a fine balance between embracing new technology and building human connections.
IFG works with 550 producing advisors and generates about $325 million in annual revenue, said Dave Fischer, the company's co-founder and chief marketing officer.
Five new RIAs are joining the industry coalition promoting firm-level impact across workforce, client, community and environmental goals.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
